The consultation
The Scottish Government’s consultation on the introduction of a single-use beverage cup (“single-use cup”) charge is now open. The consultation closes on 14 November 2024 and Scottish Government is very keen to hear from all stakeholders on the design of the scheme, the approach, and the level of the charge proposed.
The government has confirmed that consultation responses “will inform future decisions about our approach to the charge and how it will work in practice for consumers and businesses”. Responses can be made here.
The proposed minimum charge is 25p per single-use cup, similar to charges of other schemes – for example, the charge in the Netherlands is 25 cents. Single-use cups made from biodegradable or compostable material will be included in the scheme and will be subject to the charge.
The proposals are part of a package of environmental measures, including:
- microbeads (2018);
- plastic cotton buds (2019);
- single-use plastic cutlery; and
- polystyrene cups and containers (2022).
It is likely that future action will also be taken on single-use vapes (via the UK government) and on wet wipes containing plastic. In relation to the postponed deposit return scheme (DRS), the consultation notes that there “are no plans for single-use disposable beverage cups to be included in a DRS”.
Background
The Scottish Government’s commitment to consulting on a charge for single-use cups has been in place since the 2019–20 Programme for Government. This followed the Report of the expert Panel on Environmental Charging and Other Measures in July 2019. It concluded that price-based environmental charges “have been shown to be effective at reducing consumption… The Panel believes that a charge is more effective at reducing consumption and increasing reusable cup use than a disposable cup discount”. The Scottish Government has accepted the Panel’s recommendations, also proposing introducing a requirement on suppliers of single-use cups to charge a minimum amount for these cups.
The Scottish Ministers will use new powers under section 87A of the Climate Change (Scotland) Act 2009 to bring in the proposals – these powers are not yet in force. These powers will allow the Scottish Ministers to require suppliers to charge for items that are a container/ packaging for goods, which are used for consumption and “likely to be used…once or for a short period” (s.87A(3)). The net proceeds of the charge can be applied “to the advancement of environmental protection or improvement” or to other analogous purposes (s.87A(1)(b)).
Environmental concerns
The use of single-use cups is a significant environmental concern, given:
consumption of single-use cups in Scotland is estimated to have risen from 200 million in 2018 to 388 million (71 single-use cups per person a year) in 2021–22;
single-use cups are estimated to create 5,400 tonnes of waste each year (one of the highest volumes compared to nations in the EU); and
disposable cups are estimated to cost local authorities approximately £1 million a year in waste collection/ disposal.
The policy approach is designed to change behaviour by reducing use of single-use items and increasing use of reusable alternatives, thereby reducing the environmental damage caused by such items.
The proposals
The proposed approach for single-use cups is broadly based on the existing plastic-bag charging scheme, which produced dramatic results when it was introduced. 800 million single-use carrier bags were issued per year in Scotland, and within the first year of the of the charge this had fallen by 80%.
Let’s look at some key elements of this proposal:
The timing. All suppliers of drinks in single-use disposable beverages cups in Scotland are to apply the charge at the point of sale to the consumer (there are a small number of exceptions).
Exemptions. Vending machines, schools, impractical events (e.g. festivals, event spaces), and drink-only purchases (excluding hospitals and social care settings in particular) are all proposed to be excluded.
Scope. It will apply to all single-use disposable cups, regardless of composition. Biodegradable and compostable cups would be subject to the charge in order to encourage consumers to move to reuseable alternatives.
Charge. The minimum charge is to be set at 25p, which is separate to the price of the drink and visible to the customer. Research conducted in 2019 on the Scottish Government’s behalf found that “a 20–25p charge presented in this way could encourage behaviour change in 49% of the population”. The 25p charge includes any chargeable VAT.
Costs. Suppliers are to be able to retain “reasonable costs for administering the system out of the proceeds of the charge”. This matches the single-use carrier-bag model.
Administration (suppliers). Suppliers are expected to record the numbers of single-use cups that they have charged for, what they have paid for them, the amount they are entitled to deduct (to calculate the next net proceeds, such as a cost to administer the system and VAT), and the net amount raised by the charge. This replicates the record-keeping system for the single-use carrier-bag charge and should not be overly onerous to suppliers on the government’s account.
One-off costs. Costs of modifying systems would be considered a reasonable “one-off deduction from proceeds”.
Enforcement. This is to be modelled on the single-use carrier-bag charge. A failure to charge/ comply with the recording requirements is a criminal offence and liable to a fine (current maximum of £10,000). Local authorities will have the power to issue fixed penalty notices following a breach. The maximum amount of a fixed penalty is proposed to be set at £200 with a discounted amount of £100 if it is paid early.
Issues
Is the minimum charge too high? The Scottish Government consider that the proposal reflects “the available evidence about the level of charge that would be required to significantly influence consumer behaviour”.
Cup cost is variable. The Scottish Government notes that suppliers can charge more for the cup if they wish, and/ or offer additional discounts for customers who bring a reuseable cup.
Disproportionate impacts on lower incomes, those with disabilities (who have difficulty using reusable cups), rural communities, and people experiencing homelessness. The impact on these vulnerable groups is an important consideration that will need to be duly examined.
Inclusion of biodegradable single-use cups. The Scottish Government’s position is that compostable/ biodegradable materials are “not circular solutions to the problem of over consumption”, and to exempt these materials could lead to “material substitution and continuing levels of single-use consumption through loopholes to continue to supply single-use cups exempt from the charge”. This may also give rise to confusion as they often appear identical to traditional single-use cups.
Charge proceeds. The consultation is clear that further stakeholder engagement on this topic is required and that it will be needed to ensure the final policy does not exceed the devolved powers of the Scottish Parliament. Practicalities of the proceed allotment should also be taken into account. Should the proceeds be treated like those from the plastic-bag charge where suppliers are encouraged to donate to good causes? If the proceeds are to be directed to environmental causes, then should the proceeds be collected centrally by Scottish Government or by local authorities to apply to environmental issues in their own area? There are many questions yet to be answered here and we will be keeping an eye on these developments.
If you would like to discuss any of the issues raised in the consultation, please contact Natasha Durkin.